Battery Recycling Market to Reach $34.6 Billion by 2035

Battery recycling market was valued at $14.6 billion in 2025 and is projected to reach $34.6 billion by 2035, expanding at a CAGR of 9.0% from 2026 to 2035. Market expansion is supported by increasing demand for battery materials, regulatory requirements for waste-battery treatment, and investments in recycling infrastructure. According to the International Energy Agency (IEA), global electric-car sales exceeded 20 million units in 2025, representing approximately one-quarter of new cars sold worldwide. The expanding electric-vehicle fleet is increasing the installed base of traction batteries, creating future requirements for collection, reuse, and material recovery as batteries reach the end of their useful service lives. Battery recycling can support the recovery of valuable materials and strengthen supply-chain resilience by returning suitable secondary materials to industrial production.

Browse the full report description of “Battery Recycling Market Size, Share & Trends Analysis Report, By Battery Type (Lead-Acid Battery, Lithium-Ion Battery, Nickel-Metal Hydride Battery, Nickel-Cadmium Battery, Other Batteries), By Source (Automotive, Consumer Electronics, Industrial, Electric Vehicles, Energy Storage Systems, Other Sources), By Material Recovered (Lithium, Cobalt, Nickel, Manganese, Lead, Copper, Aluminium, Other Materials), By End User (New Battery Manufacturing, Metallurgy, Automotive, Electronics, Energy Storage, Other Industrial Applications), Forecast Period (2026-2035)” at https://www.omrglobal.com/industry-reports/battery-recycling-market-size

Lithium-ion batteries represent an important segment because of their use in electric vehicles, consumer electronics, and stationary energy storage. Recycling requirements are also becoming more clearly defined through regulatory frameworks. The European Commission's Batteries Regulation establishes minimum recycling-efficiency and material-recovery targets for different battery chemistries. By the end of 2025, the regulation required recycling efficiency of at least 65% for lithium-based batteries, while the target for lead-acid batteries was 75%. Material-recovery targets include 90% for cobalt, copper, lead, and nickel by the end of 2027, increasing to 95% by the end of 2031. For lithium, the recovery target rises from 50% by the end of 2027 to 80% by the end of 2031. These requirements encourage recycling operators to improve processing efficiency, document material recovery, and develop processes that return recovered resources to manufacturing supply chains.

Electric Vehicle Source Segment to Drive Battery Recycling Demand

The electric vehicle source segment is expected to benefit from the increasing number of electric vehicles entering the global vehicle fleet. According to the IEA's Global EV Outlook 2026, the global electric-vehicle fleet, excluding electric two- and three-wheelers, could exceed 450 million vehicles by 2035 under its Current Policies Scenario. The expansion of this fleet is expected to increase the long-term need for battery inspection, collection, reuse, and recycling. However, battery recycling demand depends not only on vehicle adoption but also on battery durability, replacement patterns, second-life applications, and end-of-life collection systems. As a result, recyclers must develop collection networks and processing arrangements that can accommodate the timing and geographical distribution of retired vehicle batteries.

Investment in recycling infrastructure is creating additional opportunities for recovering materials from electric-vehicle batteries. The IEA reported that global battery-recycling capacity exceeded 300 GWh per year in 2023, with more than 80% of that capacity located in China. The agency also estimated that global capacity could exceed 1,500 GWh per year by 2030 if announced projects are completed as planned. This expansion highlights the growing importance of processing capacity, although the IEA also cautions that planned capacity may exceed the available feedstock in some markets. Recycling operators therefore need to coordinate capacity expansion with battery collection, manufacturing-scrap supply, and end-of-life battery availability to maintain facility utilization and recover lithium, nickel, cobalt, and other materials economically.

Recent Developments

• In June 2025, Redwood Materials launched Redwood Energy, a platform that repurposes used EV battery packs into large-scale energy storage systems before final recycling. The technology uses battery diagnostics and modular integration to extend battery life, while batteries that reach end-of-life are processed through Redwood’s existing recycling system for critical mineral recovery.
• In April 2025, Ecobat commissioned three lithium-ion battery recycling facilities in Germany, the U.S., and the UK, collectively providing capacity to process up to 10,000 tons of lithium-ion batteries annually. The facilities produce black mass containing lithium, cobalt, nickel, manganese, and graphite, expanding Ecobat’s battery-material recovery capabilities and supporting closed-loop battery supply chains.

Market Coverage

• The market numbers available for – 2025-2035
• Base year- 2025
• Forecast period- 2026-2035
• Segment Covered-
• By Battery Type
• By Source
• By Material Recovered
• By End User
• Regions Covered-
• North America
• Europe
• Asia-Pacific
• Rest of the World
• Competitive Landscape – Contemporary Amperex Technology Co., Limited (CATL), Li-Cycle Holdings Corp., GEM Co., Ltd., UMICORE NV, and Redwood Materials, Inc., among others.

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

Battery Recycling Market Report Segment

By Battery Type

• Lead-Acid Battery
• Lithium-Ion Battery
• Nickel-Metal Hydride Battery
• Nickel-Cadmium Battery
• Other Batteries

By Source

• Automotive
• Consumer Electronics
• Industrial
• Electric Vehicles
• Energy Storage Systems
• Other Sources

By Material Recovered

• Lithium
• Cobalt
• Nickel
• Manganese
• Lead
• Copper
• Aluminium
• Other Materials

By End User

• New Battery Manufacturing
• Metallurgy
• Automotive
• Electronics
• Energy Storage
• Other Industrial Applications

Battery Recycling Market Report Segment by Region

North America

• United States
• Canada

Europe

• UK
• Germany
• Italy
• Spain
• France
• Russia
• Rest of Europe

Asia-Pacific

• India
• China
• Japan
• South Korea
• Australia and New Zealand
• ASEAN Economies
• Rest of Asia-Pacific

Rest of the World

• Latin America
• Middle East & Africa

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